This week, I am visiting China and India. Almost every daynow, we hear more news of the extraordinary economic transformations gripping these countries. Over the past 20 years, China’s gross domestic product growth has averaged 9.5 per cent and India’s 6 per cent. At these rates of growth, India will be in the world’s top six economies in 15 years from now and China will be second only to the US.

Between them, China and India have lifted literally hundreds of millions of people out of absolute poverty over the past decade. This has not come without significant environmental and social costs and there is still much to be done but it is a remarkable achievement. all the same. It is clear that developed countries need to move quickly not only to be competitive with, but also to strengthen their dialogue with India and China, and other emerging economies. This is essential if we are to find equitable solutions to global environmental problems. India and China could be consuming 20 per cent of the world’s energy output by 2020. So I was delighted that President Hu Jintao of China and Prime Minister Manmohan Singh of India, along with leaders from other major emerging markets, were at Gleneagles in July to participate in the Group of Eight’s discussions. I made the issues of African poverty and Climate Change the priorities of 2005 and our G8 Presidency because these are among the most serious challenges we face in the world today. Now is a good time to take stock of what has been achieved so far and what more remains to be done in 2005 and beyond.